Exelon 2014 Annual Report Download - page 97

The changes in heating and cooling degree days for the twelve months ended 2013 and 2012, consisted of the following:
Twelve Months Ended
December 31,
Normal
% Change
Heating and Cooling Degree-Days (a) 2013 2012 From 2012 From Normal
Heating Degree-Days ...................................... 4,744 3,960 4,661 19.8% 1.8%
Cooling Degree-Days ...................................... 869 1,022 864 (15.0)% 0.6%
2012 Residential Customer Rate Credit.
The increase in Revenue net of purchased power and fuel expense for the year ended December 31, 2013 compared to the same
period in 2012 was due to the residential customer rate credit provided in 2012 as a result of the MDPSC’s order approving Exelon’s
merger with Constellation.
Distribution Rate Increases.
The increase in Revenue net of purchased power and fuel expense as a result of distribution rate increases for the year ended
December 31, 2013 compared to the same period in 2012 was primarily due to MDPSC rate orders effective February 23, 2013 and
December 13, 2013 approving increases to electric and natural gas distribution rates charged to customers. See Note 3—Regulatory
Matters of the Combined Notes to the Consolidated Financial Statements for further information.
Regulatory Required Programs.
This represents the change in revenue collected under approved riders to recover costs incurred for the energy efficiency and
demand response programs as well as administrative and commercial and industrial customer bad debt costs for SOS. The riders
are designed to provide full recovery, as well as a return in certain instances. The costs of these programs are included in operating
and maintenance expense, depreciation and amortization expense and taxes other than income taxes. The increase in revenue
during the year ended December 31, 2013 compared to the same period in 2012 was due to the recovery of higher energy efficiency
programs costs.
Other.
Other revenue increased during the year ended December 31, 2013 compared to the same period in 2012. Other revenue, which
can vary from period to period, includes miscellaneous revenue such as service application and late payment fees.
Operating and Maintenance Expense
The changes in operating and maintenance expense for 2014 compared to 2013 and 2013 compared to 2012 consisted of the
following:
Increase
(Decrease)
2014 vs. 2013
Increase
(Decrease)
2013 vs. 2012
Baseline
Labor, other benefits, contracting and materials .......................................... $ 22 $ 20
Pension and non-pension postretirement benefits expense ................................ 8 —
Storm-related costs (a) ............................................................... 21 (62)
Uncollectible accounts expense ....................................................... 17 —
Merger transaction costs ............................................................ 5 (21)
Charitable contributions (b) ........................................................... — (28)
Other ............................................................................ 10 (3)
Increase (Decrease) in operating and maintenance expense ................................... $ 83 $(94)
(a) On June 29, 2012, a “Derecho” storm caused extensive damage to BGE’s electric distribution system and created power outages that lasted multiple days. As a
result, BGE incurred $62 million of incremental costs during the year ended December 31, 2012, of which $20 million were capital costs. In the fourth quarter of 2012,
BGE incurred $38 million of incremental costs as a result of Hurricane Sandy, of which $14 million were capital costs.
(b) During the first quarter of 2012, BGE accrued $28 million in charitable contributions as a result of BGE’s merger-related commitments. The charitable contribution
accrual and merger costs are not recoverable from BGE’s customers.
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